For many seniors, Social Security benefits provide a crucial source of income in retirement. As of 2025, the average monthly Social Security payment is $1,772. While this amount can go a long way in some states, the cost of living varies dramatically across the country. Here are the 10 best states to stretch that $1,772 Social Security check and live comfortably.
1. Mississippi
Mississippi consistently ranks as one of the most affordable states to live in. With its low housing costs and cheap healthcare, it offers great value for those on a fixed income. The state’s affordable housing market allows retirees to stretch their Social Security benefits further.
- Average Rent: $752/month (for a 1-bedroom apartment)
- Cost of Living Index: 86.5 (National average is 100)
2. Arkansas
Known for its scenic beauty and affordable living, Arkansas is a great state for retirees. The cost of groceries, transportation, and healthcare is well below the national average, making it ideal for those relying on Social Security.
- Average Rent: $772/month
- Cost of Living Index: 87.9
3. Oklahoma
Oklahoma offers a low cost of living, with affordable housing and utility costs. The state also features a variety of natural landscapes and cultural attractions, making it a pleasant place for retirees to live within their budget.
- Average Rent: $824/month
- Cost of Living Index: 88.8
4. Tennessee
Tennessee is known for its lack of state income tax, which can be particularly beneficial for retirees. With lower healthcare costs and affordable housing, Social Security recipients can enjoy a high quality of life.
- Average Rent: $1,048/month
- Cost of Living Index: 90.2
5. New Mexico
New Mexico offers a combination of affordable housing, a mild climate, and stunning desert landscapes. The state’s low healthcare costs and utility expenses help stretch Social Security benefits.
- Average Rent: $898/month
- Cost of Living Index: 89.3
6. Kentucky
Kentucky’s low housing prices and reasonable utility costs make it a good choice for retirees. The state also boasts an abundance of parks and outdoor activities, providing opportunities to stay active without breaking the bank.
- Average Rent: $856/month
- Cost of Living Index: 89.5
7. West Virginia
- Average Rent: $754/month
- Cost of Living Index: 87.8
West Virginia’s affordable housing market and low healthcare costs make it a top choice for those on Social Security. The state’s natural beauty, including the Appalachian Mountains, provides a peaceful and affordable environment for retirees.
8. South Dakota
South Dakota offers no state income tax, which is a big advantage for retirees. With low living costs across the board, including affordable healthcare and housing, retirees can make the most of their Social Security benefits.
- Average Rent: $962/month
- Cost of Living Index: 89.4
9. Indiana
Indiana’s low cost of living, especially when it comes to housing, makes it a great state for retirees on a fixed income. The state also features various cultural attractions, from museums to outdoor activities, making it an appealing place to live.
- Average Rent: $909/month
- Cost of Living Index: 89.9
10. Alabama
Alabama offers a combination of low property taxes, affordable healthcare, and reasonable utility costs. This, along with its mild climate, makes it an attractive state for retirees looking to stretch their Social Security checks.
- Average Rent: $870/month
- Cost of Living Index: 88.4
Conclusion
Living on an average Social Security payment of $1,772 requires careful budgeting, but these 10 states offer affordable living, helping seniors make the most of their benefits. From Mississippi’s cheap housing market to Tennessee’s lack of state income tax, these states provide great value and opportunities for retirees to thrive financially.
For more information about cost of living in different states, visit Bureau of Economic Analysis.
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